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Please take the time to read this introduction. You'll find many of your questions answered here. You may also find useful information by using the "search" function.
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Basic Introduction
The following is a very basic introduction to credit repair. You have many more legal rights and avenues than can possibly be listed here, so be sure to read through the posts, use the "search" function for topics that interest you, and feel free to ask questions when needed!
You will find many people willing to help you along the way, so don't be shy....post away!
Where Do I Start?
First, you need to know where you stand and what you have to work with. The very first step is obtaining current copies of all 3 of your credit reports. The information contained in your report changes, sometimes frequently. A current copy is the best place to begin.
Each Consumer Reporting Agency (CRA) maintains its own, seperate database, and the information on each report is often different. Please plan on getting all 3 reports.
How to Get Your Reports
Sign up for one of the credit monitoring services. Several allow for a free trial. Please pay attention to how many "new" reports can be pulled when you join. Some allow a new report daily, some monthly and others only 4X per year. You can always ask for opinions in the credit forum before committing yourself to a membership.
Some of the most popular credit monitoring services are listed below:
*
MyFICO - $42.84/yr. The only site that offers your real FICO scores. (The scores that the banks use.)
*
Equifax Credit Watch Gold - $12.95/mo.
Please pay attention to how many "new" reports can be pulled when you join. Some allow a new report daily, others allow one per month.
Ok. But, can I get a free copy of my credit reports?
Yes! However, I highly recommend purchasing your credit reports at one of the services above. By obtaining a credit report for free, you give the credit bureaus an extra 15 days to verify your disputes. 15 days is a crucial amount of extra time to give the credit bureaus. In my opinion, you are much better off just spending $10-15, plus you get to see your credit scores.
There are a few ways to get them free:
1. Visit
AnnualCreditReport.com. ACR was set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law.
2. Call, write or visit the website of the CRA's.
Equifax.com TransUnion.com Experian.com
3. If you have been denied credit, insurance or employment, you should have received a "notice of adverse action". The letter will give you instructions on how to get a free copy of the report used in the decision. Note that this will not get you copies of all 3 reports, just the one you used in the decision.
If you are married, your reports are still separate. There may be "joint" accounts common to both reports, and your spouses' name may be noted on your report, but otherwise your report is yours alone. Changing an item on yours does not affect your spouses.
Ok, I have my reports, now what?
You should try to understand what is being reported.
You report is divided into several sections:
1. Personal Information
This section contains your name, address, employer, date of birth, social security number, and your spouse's name. Several variations of each may be listed, along with former addresses and names. This information is supplied both by creditors, and by you when you fill out a credit application.
Perhaps the first thing to attack is all of the old addresses and name variations. These serve no positive purpose on your report. If this information is needed by a creditor, you can supply it on an as-needed basis. These items can be removed by calling or writing the CRA, and asking for their removal, as they are "not accurate".
2. Public Records
Bankruptcies, liens, judgments, garnishments, felony convictions may all be listed here.
Review this information carefully. Anything that is a public court record is fair game. Information here can be disputed just like anything else on your report. It often passes through many hands between the courthouse and CRA, and is prone to errors.
Be cautious of sending in documentation in an effort to "correct" your report. You may find that you have inadvertently verified information by your own submission, making it's dispute nearly impossible later.
3) Credit History
Loans, leases, mortgages, credit cards, collection accounts will be listed here. Also listed is your payment history, and various details about each account.
The important details here are:
Date of Last Activity - This is the date that is used to start the 7-year reporting clock.
Date Last Reported - This is the last date that the creditor supplied an update to the CRA. It has no bearing on reporting period or SOL computation.
Account Type:
R= "revolving"
I="installment"
Followed by payment history:
0 Too new to rate
1 Pays account as agreed
2 Not more than two payments past due
3 Not more than three payments past due
4 Not more than four payments past due
5 At least 120 days or more than for payments past due
7 Making regular payments under W.E.P (wage earner plan)
8 Repossession
9 Bad Debt; placed for collection; skip
Limit/Original Amount - For installment loans, the amount of the loan at it's inception. For revolving accounts, your credit limit. This is used to compute your credit utilization %, an inaccurate low limit will lower your score.
Balance - The amount owed as of the date reported.
Open/Closed - Whether an account is open, active, and available for your use, or closed and no longer usable.
Closed by Consumer - Indicates that the account was closed at your request. Neither positive or negative.
Closed By Credit Grantor - Indicates that the account was closed by the creditor, often involuntarily. This is nearly always seen as a negative.
4) Inquiries
This is a listing of everyone who has "pulled" a copy of your report.
Often divided into two sections, "hard" and "soft".
"Hard" inquiries are a result of you applying for something, or a current creditor looking at your report. These are the inquiries that lenders can see.
"Soft" inquiries are only viewable by you, and are commonly the result of you pulling your own report, or marketing inquiries.
Listed by date, this is a list of who has pulled your report.
There are specific reasons which must be met before anyone can pull your report. "Permissible Purpose" refers to the legal requirements for anyone to do so. Generally, you must:
1) Apply for something, like credit or insurance.
2) Have a current, open account with the creditor.
3) Have otherwise given your permission for the report to be pulled.
Companies or individuals pulling your report without "Permissible Purpose" are violating Federal Law, and subject to fines of $1,000, more in certain states.